Maybe it’s the first time home buyers who are finally getting the message about that sweet $8,000 tax credit.  Maybe it’s a feeling that the job market is stabilizing.  It could simply be that this recession won’t last forever and we’re finally seeing some light at the end of the tunnel.  (And let’s hope that this time next month we won’t be posting about how home sales are down!!!).

Today’s big headline is that new home sales are up 11 percent.  Before we blow sunshine up anyone’s skirt, there’s this from Business Week:

But while housing might be finding a floor, it’s less than a penthouse view. Morgan Stanley analyst David Greenlaw noted that “much of the sales activity was concentrated at the lower end of the market. Second, sales contracts that were signed in June may have been tied to the lows in mortgage rates that were recorded in April and May.”

And lest we forget, there’s still an excess of inventory – especially in existing homes.  This has caused a continual decline in housing prices – a condition that has assuredly made many sellers quite unhappy.  The correction continues, but eventually it will stabilize.

I’m ready for it.